FHA Mortgage Optimizing Refinance Loans – Benefits and Qualifications!

FHA Mortgage Optimizing Refinance Loans – Benefits and Qualifications!

FHA Mortgage Optimizing Refinance Loans – Benefits and Qualifications!

FHA Mortgage Streamline Refinance loans are available to homeowners who have financed their homes with FHA loans.

First a little history of FHA refinance loans. They have been available for a long time, all the way back to the 1980s. Due to the popularity of FHA home loans, Streamline refinance loans have at least 20% of the home refinance market and it is growing at a steady rate.

FHA loans are very popular in today’s housing market because of the low 3.5% down payment and lower credit scores required to qualify for a loan. Most conventional and insured conventional loans require a 20% down payment. Credit scores for FHA loans can be around 620.

There are many advantages to this type of refinancing.

The advantages of FHA refinance mortgage loans:

1. A homeowner can get a lower interest rate and this will help them lower their monthly mortgage payment.

2. They can change the terms of their existing loans, such as the duration of the loan.

3. Fast processing and reduced paperwork and documentation. That’s how they get the name “streamlined”. Closing will take less time and you will spend less time trying to gather all the documents and information.

4. Closing costs can be included in the new loan if there is enough equity in the home, or they can choose to have no closing costs, but this can result in a higher interest rate.

5. Homeowner is not required to verify income or employment status.

Of course, there are some qualifications that you will need to meet in order to get an optimized FHA refinance loan.

Qualifications for FHA Streamlined Mortgage Refinance Loans:

1. You cannot be in arrears with your monthly mortgage payments in the last 12 months.

2. The new mortgage loan must reduce the monthly payments or the duration of the loan.

3. No withdrawal option available.

4. No credit qualifications.

Unfortunately, things can change. The FHA is considering changes to their loan program due to the cost of increased foreclosures. Among the changes being discussed are increased mortgage insurance and higher credit scores to qualify for a mortgage.

If you are considering refinancing your home mortgage, now is a good time to do it before the changes happen!

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